Fraudsters behind £12m UK-wide scam jailed

Fraudsters who conned NHS hospitals, councils and a government out of more than £12m have been sentenced.

Ten conspirators were given sentences at Leicester Crown Court of up to 10 years in prison.

In each case forged letters, emails or faxes were sent to the 22 targeted organisations, pretending to be from a legitimate firm already carrying out contract works.

The biggest victim was the Guernsey government, which lost £2.6m.

In one case, a £1.28m payment to build a mental health unit at Lincoln’s St George’s Hospital was diverted when NHS trust staff failed to check the new bank details supplied.

It was only when an employee of the building firm Costain saw the bogus letter, with its logo out of place, a fake reference number and signatures, that the alarm was raised.

Lincolnshire Partnership NHS Foundation Trust then called in the police at the end of 2011, sparking a lengthy investigation, led by Lincolnshire Police.

After sentencing on 23 June, Det Sgt Mike Billam, said: “I am pleased to say that with the assistance of law enforcement in Dubai, Poland and other countries, this investigation has got to the heart of this conspiracy and has disabled what was clearly an international organised crime group.”

‘Sophisticated’

The fraudsters took advantage of the fact that public sector contracts were freely available to see, under financial transparency rules.

In sentencing, Judge Philip Head said: “This was a sophisticated and widespread fraud in its conception and execution”, adding, “these bodies were selected because it was hoped their accounting processes would be vulnerable.”

“The loss falls necessarily on those who are not able to pay it, ultimately the members of the public whose taxes fund these bodies,” he said.

Mohammed Nadeem, 33, also of Redditch, 67 months for conspiracy to launder money

Oghogho Ehanire, 42, of Brackenbury Road, Preston, Lancashire, 12 months suspended for two years for laundering

Yagnesh Patel, 46, of Rookery Road, Staines, Surrey; 15 months, suspended for two years for laundering

Zaheed Muhammed, 48, of Tinto Road, Glasgow; 21 months, suspended for two years for laundering

Abdul Ghaffar, 68, of Lineholt Close, Redditch; 22 weeks, suspended for two years for laundering

Tariq Khan, 35, of Meadway, Ilford, Essex, was jailed for eight months and ordered to repay £20,000 to the Lincolnshire NHS trust after admitting perverting the course of justice by supplying false documents to police

An 11th person, Monica Thomson, 40, of Ivy Way, Airdrie, North Lanarkshire, will be sentenced for her part in the conspiracy next month.

The targets

States of Guernsey Government was defrauded of the largest single amount, £2.6m, and the cash funnelled into seven separate accounts